Luxembourg Fund Labelling Agency (LuxFLAG), an organization that certifies whether microfinance investment vehicles (MIVs) actually invest in microfinance, recently carried out a study of the MIVs it has labeled (as investing in microfinance) to determine how they have been impacted by the recent financial downturn.Covering the three years ending June 2009, the study revealed:
- Some MIV growth deceleration during the financial crisis, paired with a consistent rise in total MIV assets
- A lack of correlation between MIVs and other sectors of the capital markets
- Slower demand for funding from underlying microfinance institutions MFIs slowed down, leading to an increase in MIV cash positions
- Lower but positive monthly returns
- No major redemptions during the crisis.
Sources and resources:
Press release:
Luxembourg Fund Labelling Agency (LUXFlag):
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